Consumers Scramble to Cover Expenses as Savings Dwindle

Consumers’ “reserves” to tackle life’s emergencies and everyday expenses — their savings — are evaporating.

According to Goldman Sachs research, as reported by the Wall Street Journal, U.S. households have spent 35% of the “extra” $2.7 trillion in savings accumulated while the pandemic raged, and by the end of the year, that drawdown will have reached 65%. Inflation has forced many of us to dip into savings accounts to offset the loss of purchasing power. The pressures are apparent in the statistics that in 2020...